Career International 2022 Semi-Annual Report: Revenue and Net Profit Increase from Online and Offline Business Synergy

2022-08-26 16:47

Career International (300662.SZ) published its 2022 semi-annual report on August 24. In the first half of 2022, Career International, as China’s first A-share listed HR service enterprise, reported an operating income of RMB 4.407 billion yuan, a YoY increase of 39.61%. Net profit attributable to the owners of its parent company rose by 27.72% YoY to RMB 131 million yuan, and net profit attributable to shareholders, after deducting non-recurring gains and losses, reached RMB 113 million yuan, a YoY increase of 30.09%.

The first half of 2022 witnessed complex and volatile domestic and international situations along with the challenges stemming from the pandemic. As a leading comprehensive technology-driven talent solution provider, Career International promoted its “HR technology + platform + service” business model for the whole industry chain, improved efficiency, and implemented lean operation through technology. It also strengthened the construction of data mid-end and label mid-end. Taking advantage of the in-depth collaboration between online platforms and offline services, the Company increased service scenarios, expanded the value boundaries of its ecological platforms, and fostered high-quality development for the human resources industry.

Stable growth in domestic and overseas markets, recruitment strengths ensured development resilience

The Company’s steady growth was the result of core recruitment competitiveness built through its operation strategies, which centered around four aspects: synergy between front-end and back-end offices, one recruitment specialist for one job position, a focus on five major economic circles, and technological empowerment. During the reporting period, Career International concentrated on five major urban clusters. Additionally, it has expanded services and built deeper a stronger relationship with “'specialized and innovative” and fast-growing enterprises on the basis of providing in-depth services for major customers. The Company empowered business operation through technical means, and continued to improve the efficiency of job-talent matching in addition to the efficiency of recruitment delivery and operation/management. These efforts allowed its offline business to maintain impressive growth resilience, with a YoY growth of 39.51%.

The Executive Search business has achieved great results in several fields, such as semiconductors, big data, cloud computing, new energy, and intelligent manufacturing. Revenue increased by 19.33% YoY. Recruiting Process Outsourcing (RPO) continued to center on key accounts, unlocking potential in driving cross-selling across business lines, increasing the stickiness of key accounts, and accumulating comprehensive service management capabilities; The Flexible Staffing business has maintained rapid growth, and the revenue increased by 52.41% YoY. The number of temporary workers for outsourcing business registered over 31,700, and they were dispatched to more than 178,600 flexible employment positions. Technology R&D positions, as the centerpiece of job outsourcing business in 2022, saw significant growth. During the reporting period, the Company recommended more than 10,400 mid-to-high-end management personnel and technical professionals to customers.

With the recovery of overseas markets in the first half of the year, Career International leveraged its strong cross-regional service network to provide customized products and services for customers’ global talent acquisition efforts, thus further consolidating its leading position in the industry. As of the end of the reporting period, the Company’s revenue outside mainland China accounted for 24.50% of its operating income. Investigo, a holding subsidiary based in the UK, performed exceptionally well in terms of revenue and profit growth and reported a YoY increase of 71.08% in operating income. To further implement its globalization strategy, Career International increased its stake in Investigo to 62.5% during the reporting period.

Online platforms boosted offline services, the second curve drove long tail customer growth  

During the reporting period, the Company’s operating income from technical services increased by 75.7% YoY, which is a result of its strategic focus over the years. Since its listing, Career International has continuously improved upon its strategy, referred to as “one body with two wings,” and increased its investments in technology. Its ecological layout has driven the growth of the “Second Curve,” created new opportunities for profit growth, and provided a path for future growth.

In the first half of 2022, the Company’s investment in technology and informatization increased by 139.73% YoY. Thanks to the company’s expansion of its technology platform and product value territory along with the synergy between online platform and offline services, new customers and long tail customers have increased, and the repurchase rate has continued to rise. During the reporting period, 4,670 customers generated income in the form of service fees, and more than 20,000 enterprises got registered in the Company’s vertical recruitment platforms, industry interconnection platform and SaaS platform. Platform user stickiness has also improved. For example, Yimai Tongdao, a vertical recruitment platform focusing on big health industry, currently has more than 850,000 active candidates for its platform and private domains, as well as over 21,000 registered enterprise users. The platform’s MAU reached 420,000 with enhanced user engagement.

Hewa, the HR industrial interconnection platform operated by Career International, has experienced explosive growth, and its data has increased significantly. As of the end of the reporting period, Hewa ecosystem had 8,200 registered human resources partners covering more than 120 cities, more than 90,000 registered recruiting consultants, and over 6,800 mid-to-high-end positions for recruitment. In the future, the Company will accelerate the construction of its ecosystem for HR services through the “Iron Triangle” model that features Hewa Box, the Hewa trading platform and Xunzhi, empowering the industry and platform partners.

Advancing the “five transformations” goals and maintaining high-quality and stable employment

In the first half of 2022, a multitude of “black swan” events occurred both domestically and internationally, which have posed intense challenges to the macro-economy and the employment market. Ensuring the employment of college graduates has become the top priority for employment stability. To fulfill its social responsibilities, Career International, as a human resources service agency, leveraged its role as a bridge between the supply and demand. Through cloud recruitment, live streaming, school-enterprise cooperation and college student training base, the Company created a closed-loop service for college students that covers internship, employment and job stability. By taking these measures, the Company aims to ensure job opportunities for key groups.

At the same time, as a key industry player in attracting talent, Career International has employed nearly 300 colleges graduates in 2022, providing more high-quality job opportunities for college graduates.

In the digital age where uncertainty abounds, high-quality development has its own value. In the face of a precarious future, Career International will continue to advance the goals of specialization, standardization, normalization, digitization and internationalization. By following the requirements of high-quality development, the Company will enhance its core competitiveness and the ability to handle risks, explore growth opportunities, and start a new chapter while seeking steady growth.